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Fayette, Alabama: LIHTC's Impact on Affordable Housing in a Small City
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Fayette, Alabama, a city with a population of 6,207 as of 2022, has implemented the Low-Income Housing Tax Credit (LIHTC) program to address affordable housing needs. The city's LIHTC-funded affordable housing inventory comprises 125 total units, of which 98 are designated as low-income units. This represents approximately 5.3% of the city's estimated 2,378 housing units.
Fayette has received $372,348 in project tax credits through the LIHTC program. With approximately 4 projects, this equates to an average federal funding of $93,087 per project and $2,979 per unit. The city accounts for 0.21% of Alabama's total LIHTC funding allocation.
The city's affordable housing development spans over a decade, with the first LIHTC project, Brookside Apartments, completed in 1987, and the most recent, East Side Apartments, in 1998. The 1990s were the most active period for affordable housing development, with three out of four projects completed during this decade.
The LIHTC-funded housing stock in Fayette consists of 51 one-bedroom units, 42 two-bedroom units, and 28 three-bedroom units. This diverse mix accommodates various household sizes and needs within the low-income population.
Fayette's population has remained relatively stable over the past decade, with a slight increase from 5,823 in 2019 to 6,207 in 2022. The median income has shown significant growth, rising from $49,189 in 2019 to $51,033 in 2022. This income growth may indicate a reduced need for additional affordable housing in recent years.
Racial demographics have remained fairly consistent, with the white population comprising about 72-74% of the total, and the Black population around 22-25%. The Hispanic population has fluctuated between 0-3% over the past decade.
Fayette's LIHTC-funded affordable housing inventory, while modest at 5.3% of the estimated housing stock, has been established over a significant period. The city's four LIHTC projects, developed between 1987 and 1998, provide a mix of unit sizes to accommodate various low-income household needs. The absence of new LIHTC projects in recent years, coupled with rising median incomes, suggests that the existing affordable housing stock may be meeting current needs. However, ongoing monitoring of demographics and housing affordability will be crucial to ensure the city continues to meet the needs of its low-income residents.
